Encyclopedia DeFi · Entry 326
StableSwap pools: low slippage near balance and risk away from it
In this article
At a glance
Key facts
| Fact | Detail | Source |
|---|---|---|
| Near balance | The curve is relatively flat near its intended balance. | [1] |
| Amplification | Lower amplification moves the design closer to constant product. | [1] |
| Imbalance | The curve changes behavior as one asset becomes scarce. | [1] |
Separate a useful curve from a price guarantee
Imagine a pool designed for two assets normally exchanging near one-to-one. Small trades around balanced inventory can receive rates close to that ratio. If users consistently sell A to receive B, the pool accumulates A and loses B. The next quote reflects that changing inventory.
If A’s external value deteriorates, a mechanically quoted exchange does not repair its backing. LPs can end up holding more of the less desirable asset.
Amplification is a modeling choice
The original paper’s amplification analogy describes the shape and concentration of liquidity. It is not a statement that the LP personally borrowed a stated multiple of their deposit. Actual implementations also have fees, asset scaling and version-specific controls.
Use the whitepaper for mechanics
The cited 2019 paper includes historical simulations and return figures. They are not current yields and are not adopted as forecasts here. A practical pool assessment also needs the exact asset contracts, current balances and contract version; the words stable pool do not identify those dependencies.
Direct answers
Questions people ask
Does low slippage make a stable pool risk-free?
No. The invariant can improve execution around its intended balance while depositors remain exposed to asset and implementation failures.
Inspect the evidence
The answer and key facts have stable claim links. These records retain the scope and qualification when reused.
StableSwap concentrates exchange liquidity near an intended balance between related assets. Its invariant behaves more like constant sum near balance and moves toward constant-product behavior as inventory becomes uneven. The amplification parameter controls that shape; it cannot make a failing asset worth its intended reference value.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.
Link to this claimNear balance: The curve is relatively flat near its intended balance.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.
Link to this claimAmplification: Lower amplification moves the design closer to constant product.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.
Link to this claimImbalance: The curve changes behavior as one asset becomes scarce.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.
Link to this claimRevision history
- — First publication after primary-source research and separate automated verification.
Source register
Sources and references
Retrieval dates and locators are recorded individually.- StableSwap whitepaperCurve Finance
Historical curve mechanics only; historical performance marketing not adopted.
Locator: Invariant comparison; Amplification coefficient · Version / scope: Michael Egorov, 2019-11-10 whitepaper · Retrieved: 2026-10-02T18:53:20.187ZOpen source
Research and drafting use AI assistance. A separate automated review checks claims against primary sources; no external expert or named human review is implied. Publication, substantive editing, source retrieval and verification are recorded separately. This version was independently checked by an automated reviewer on 2 October 2026.
Editorial method and correctionsDegrees of Satoshi editorial project. “StableSwap pools: low slippage near balance and risk away from it.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/stableswap-pools/